Crude: bouncing back after a big draw

Crude: And another month bites the dust. It’s hard to believe that we’re already moving along to the CLM7 contract. We now pivot past the last month of the year and that should be worth something to everyone trying to play the cash and financial markets. We kick off with resistance here at 4844, 4960 and 5045. We’ll look back lower to support at 4766, 4680 and 4575. We’ll also change the lead spread and the front spread moves up to CLM7/CLN7 and starts with resistance at –32, -25 and –13. Support comes back to –44, -57 and –65. Let’s get this week done right and the new contract back in play. Don’t lose your way; follow the Dollar, follow the dream. 

Gasoline: OK laziness has been set aside and I’m moving ahead of the RBM17 contract. We can start with resistance here at 15775, 15965 and 16140. Support looks below to 15588, 15370 and 15155. The front spread moves to RBM7/RBN7. Resistance at +25, +110 and +200. Support to –55, -124 and –190. The RBM7/CLM7 gets resistance at 1810, 1888. Support falls to 1749, 1683. 

Distillate: The calendar keeps us moving and we are focused on the HOM17 contract. We’ll get resistance here at 15048, 15270, and 15455. Support looks back to 14872, 14660, and 14485. The front spread bumps up to HOM7/HON7. Resistance here looks at – 48, +35. Support holds down to –76, -88. The crack moves up to HOM7/CLM7 Resistance at 1511, 1576. Support back to 1439, 1366. 

Macro Fundamentals: Looks like oil is cool again. I can’t wait until next week to read about all the hedge fund managers that are interviewed talking about how bullish they are on oil. Then there will be the optimistic bank research papers. Then it’s back to OPEC for them to say that speculators have finally figured it out and are think-ing smart. Child, please. I’ll go along with the charade for now because another push above $50 and we’re talking about an upside range...again. As for today, we’ll watch Jobless Claims (244K) and PPI-FD (0.2) at 8:30 a.m. ET with a helping of Fed speaks on the side. 

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About the Author

Carl Larry is Director of Business Development Consultant for Oil and Gas at Frost & Sullivan. Follow him on Twitter (@oiloutlooks) or on his website.